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Thursday, 2 May 2013 - 07:44
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Unemployment Peaks in 2014

The rise in unemployment will peak in 2014 to up to 9 percent. The bad economic prospects will cause loss of jobs and rising unemployment. This is a conclusion of the Economic Office of ABN Amro in the report 'Dutch Economy in Sight' published on Thursday . While the rise earlier was caused by starters and returning employees to the labor market, the unemployment growth is now also a result of the shrinking employment. The number of jobs increased in 2011, but not enough to help the many starters and people who return to the work force, the report said. In the course of 2012 there was a decrease in the number of jobs, including a sharp slowdown in the second half of that year. As a result, unemployment has been rising faster for some time now. "The deterioration in the labor market is also reflected in the ratio between the number of unemployed and the number of vacancies. Halfway through 2011, there were three job seekers per vacancy. By the end of 2012, there were five." Due to the uncertain economic conditions, ABN Amro does not expect improvements. The sales expectations this year, for transportation, wholesale and industry are positive. However, the pace is moderate and therefore the demand for temporary workers remain limited. The construction, catering and services will still have decreasing sales. Only business services are an exception, with a relatively slight sales growth of 1 percent. Based on these expectations, ABN Amro expects overall a slight decline in sales of 0.5 percent for the staffing industry this year.

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